Intermediate Accounting II - D104 WGU exam questions with answers

Intermediate Accounting II - D104 WGU exam |\ |\ |\ |\ |\ |\




questions with answers
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Which method should be used to handle indirect costs of self-
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constructed assets? |\




Assigning no variable overhead to a constructed asset
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Allocating overhead on the basis of gained production
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Assigning a pro rata portion of all overhead to the asset
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Allocating the total overhead to the asset - CORRECT ANSWERS
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✔✔Assigning a pro rata portion of all overhead to the asset |\ |\ |\ |\ |\ |\ |\ |\ |\ |\




A company purchases land for development into a subdivision.
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The land has a factory building on it that will need to be
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demolished.
Where should the interest costs be allocated?
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Interest expenses |\




General administrative expenses |\ |\




Cost of the land |\ |\ |\




Cost of the plant - CORRECT ANSWERS ✔✔Cost of land
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In which situation can capitalization of interest be included in the
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cost of land?
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When holding the land as an investment
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When purchasing land with the intension of developing it for lots
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sales

, When selling the land
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When building a structure on the land - CORRECT ANSWERS
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✔✔When purchasing land with the intension of developing it for
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lots sales
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Which value should be used to record machinery that was
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purchased with a long-term note? |\ |\ |\ |\




Sum of all estimated payments
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Market price of the machinery
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Present value of the future payments
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Appraised value of the machinery - CORRECT ANSWERS
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✔✔Present value of the future payments |\ |\ |\ |\ |\




Which item is considered to be a technology-related intangible
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asset?
Trade secrets |\




Goodwill
Artistic-related rights |\




Licensing agreements - CORRECT ANSWERS ✔✔Trade Secrets
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Pay out ratio - CORRECT ANSWERS ✔✔Pay out ratio = cash
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dividends/net income (less preferred dividends, if applicable) |\ |\ |\ |\ |\ |\




Return on common stockholders' equity - CORRECT ANSWERS
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✔✔Return on Common Stockholders' Equity = (Net Income -
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Preferred Dividends) / Average Common Stockholders' Equity
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